[ad_1]
New York – Global stocks rose on Tuesday, buoyed by broad gains in Europe and rising oil prices, even though Asian markets remained under the grip of the trade turmoil
. on a $ 34 billion worth of Chinese products that Beijing has promised to match tariffs on US products. US President Donald Trump also threatened Monday to "do something" if the US was not better treated by the World Trade Organization (WTO).
Prospects of a full-fledged trade war and incessant weakening of the yuan in the past two weeks and is close to the lows of 11 months – would have forced China into the intervention via the banks of 39; State. "This is by far the largest [yuan loss] that I can recall, Prudence suggests that it must be adapted across Southeast Asia because of the competitive implications," he said. Neil Mellor strategist from Bank of New York Mellon. "It generates some instability in the market simply because of its magnitude."
Among the stock markets, Hong Kong plunged 3.3% to nine-month lows, also affected by the US brake on China Mobile. The Shanghai Stock Exchange experienced a two-year low but closed up after the recovery of the yuan
Europe was more cheerful with a pan-European stock index of 1%, a strengthening of the euro and a rise in bond yields after German Chancellor Angela Merkel has concluded a migration agreement with its partners in the Bavarian conservative coalition.
In the United States, the Dow Jones Industrial Average rose by 88.76 points, or 0.37%, to 24,395.94; the S & P 500 gained 7.04 points, or 0.26%, at 2,733.75; and the Nasdaq Composite added 2.71 points, or 0.04%, to 7,570.40
"The main driver of US resilience is that the technology has been solid," said Rory McPherson, head of the investment strategy at Psigma. "Expectations are high enough for the earnings season, with earnings growth of 20% from one year to the next." US markets should close early on Independence Day
Energy stocks were boosted by the rise in Brent crude oil above $ 78 per barrel, noted McPherson. The technology and energy sectors in Europe grew by 0.5% and 1% respectively. This helped the MSCI World Index to rise by 0.25%, far exceeding the two and a half month lows reached last week.
While US growth and corporate profits seem unbadailable, China's and Europe's tariffs ultimately prove to be detrimental to American businesses and jobs. US bond yields have risen slightly in a more favorable environment, but the concern over trade has helped to narrow the gap between yields at two and ten years since 2007. "Basically, [the flat curve] says that the underlying growth of the US economy could "The dollar fell 0.4% against a basket of currencies and tensions in Germany allowed the euro to gain 0.2 % against the greenback 19659002] Friday's monthly payroll data should show that US labor markets remain tense, keeping the US Federal Reserve's policy on track.
Jane Foley, Strategist in currency at Rabobank, the US central bank is still the most hawkish central bank among its peers and this should support the dollar for the moment, "
Reuters
[ad_2]
Source link
